You will be redirected back to your article in seconds

EMI prospects brighten

Company reports $348 mil profit

LONDON — Investors displayed renewed confidence in EMI Group on Wednesday after the music giant announced better-than-expected earnings for its most recent financial year.

Earlier this year, the company issued two profits warnings, but Wednesday it told the stock market it will report earnings before interest, tax, depreciation and amortization (Ebitda) of about £174 million ($348 million) — ahead of market estimates.

Full results for the group’s financial year, which ended March 31, will be announced May 23, but the company said its program of cost-cutting is ahead of schedule and that it should see savings of $140 million in the current year.

By 10 a.m., EMI’s share price was up more than 5% to $4.53, despite disclosing that its board of directors has “decided to suspend dividend payments until the benefits of the restructuring process have been fully realized.” That process should be complete by 2009.

In the trading statement, EMI also said revenues at its record company division decreased by about 15% in the past year, although digital revenue was up by about 59%, representing some 10% of overall revs.

EMI Music Publishing revenues remained flat, with digital revenue increasing by 28%, representing about 8% of total sales.

The strength of the publishing side of the biz has prompted the EMI board to examine a debt restructuring package by borrowing against the value of its songs catalog. That securitization should take place before the end of this year.

More Scene

  • Good Plus Foundation Halloween Bash

    Jerry and Jessica Seinfeld Host Charity Halloween Bash With Gwyneth Paltrow, Sarah Michelle Gellar

    LONDON — Investors displayed renewed confidence in EMI Group on Wednesday after the music giant announced better-than-expected earnings for its most recent financial year. Earlier this year, the company issued two profits warnings, but Wednesday it told the stock market it will report earnings before interest, tax, depreciation and amortization (Ebitda) of about £174 million […]

  • 'Walking Dead' Cast Shares Hopes for

    'Walking Dead' Cast Shares Hopes for 200th Episode at Season 8 Premiere (Watch)

    LONDON — Investors displayed renewed confidence in EMI Group on Wednesday after the music giant announced better-than-expected earnings for its most recent financial year. Earlier this year, the company issued two profits warnings, but Wednesday it told the stock market it will report earnings before interest, tax, depreciation and amortization (Ebitda) of about £174 million […]

  • David Letterman Mark Twain Prize

    Jimmy Kimmel to David Letterman at Mark Twain Ceremony: 'Everything Was Fine Until You Went Off the Air'

    LONDON — Investors displayed renewed confidence in EMI Group on Wednesday after the music giant announced better-than-expected earnings for its most recent financial year. Earlier this year, the company issued two profits warnings, but Wednesday it told the stock market it will report earnings before interest, tax, depreciation and amortization (Ebitda) of about £174 million […]

  • 'Suburbicon' film premiere

    George Clooney 'Glad' Academy Took Action Against Weinstein: 'It's Long Overdue'

    LONDON — Investors displayed renewed confidence in EMI Group on Wednesday after the music giant announced better-than-expected earnings for its most recent financial year. Earlier this year, the company issued two profits warnings, but Wednesday it told the stock market it will report earnings before interest, tax, depreciation and amortization (Ebitda) of about £174 million […]

  • GLSEN Respect Awards

    Gay Actors Talk Sexual Harassment at GLSEN Awards: 'It Definitely Happens'

    LONDON — Investors displayed renewed confidence in EMI Group on Wednesday after the music giant announced better-than-expected earnings for its most recent financial year. Earlier this year, the company issued two profits warnings, but Wednesday it told the stock market it will report earnings before interest, tax, depreciation and amortization (Ebitda) of about £174 million […]

  • 'The Breadwinner' film premiere

    Angelina Jolie Talks 'The Breadwinner' at AIF Fest: Women's Rights 'Remain a Central Burning Issue'

    LONDON — Investors displayed renewed confidence in EMI Group on Wednesday after the music giant announced better-than-expected earnings for its most recent financial year. Earlier this year, the company issued two profits warnings, but Wednesday it told the stock market it will report earnings before interest, tax, depreciation and amortization (Ebitda) of about £174 million […]

  • Made By Google

    Rashida Jones, Jaden Smith and More Stars Party at Made by Google Opening Night

    LONDON — Investors displayed renewed confidence in EMI Group on Wednesday after the music giant announced better-than-expected earnings for its most recent financial year. Earlier this year, the company issued two profits warnings, but Wednesday it told the stock market it will report earnings before interest, tax, depreciation and amortization (Ebitda) of about £174 million […]

More From Our Brands

Access exclusive content